WHO CAN PERFORM SOCIAL AUDIT?

“Social Auditor” means an individual registered with a self-regulatory organization under the Institute of Chartered Accountants of India or such other agency, as may be specified by the Board, who has qualified a certification program conducted by National Institute of Securities Market and holds a valid certificate; (as per Gazette Notification of SEBI dated 25th July, 2022).

Eligibility Criteria:

1. Any Individual or Entity of firm having a track record of minimum three years of conducting social impact assessment of a social enterprise indulged in any of the areas notified by SEBI under Regulation 292E of (SEBI Issue of Capital and Disclosure Requirements) Regulations 2022 (as per Gazette Notification of SEBI dated 25th July, 2022).

2. Average annual grants or expenditure of social enterprise for which impact assessment has been carried out for the last three financial years should be at least Rs.50 lakhs.

3. Suitable human resources in the field of social development having experience of usage of relevant methodology of social audit.

Disqualification:

Any individual or any of the partner/Director of an entity convicted for an offence involving moral turpitude by any court of competent jurisdiction. 

The individual or any of the partner/Director of an entity has been declared as undischarged insolvent/bankrupt by the court of competent jurisdiction or any other authority empowered by law.

Any individual or any of the partner/Director of an entity has been debarred by SEBI.

Please note that this is the initial empanelment of Social Auditor carried out by the Institute of Social Auditors. Regular empanelment will be as per the Gazette Notification of SEBI dated 25th July, 2022 and the norms for the same will be notified separately.

Requirement of Certification for Social Auditors:

Financial auditors can qualify to be social auditors after they have successfully completed a course at the National Institute of Securities Markets (NISM) and received a certificate of completion. Other individuals desirous of being Social auditors need to have at least 1 eligibility criterion listed below:

1. Post-graduates from universities recognised by the University Grants Commission (UGC) with a minimum of 3 years of experience in the development sector, or

2. Graduates from universities recognised by the UGC with a minimum of 6 years of experience in the development sector, or

3. Cost and management accountants, or any other persons with suitable accreditations with a minimum of 6 years of experience in the development sector.

AND

4. Complete the NISM certificate course mentioned above. All social Auditors will have to be empanelled under an SRO (Institute of Social Auditors of India) formed as a separate Sustainability Directorate under the aegis of ICAI.